CHINESE FIRMS IN U.S. BOURSES THREATENED BY BILL TRUMP IS SET TO SIGN
The U.S. House of Representatives passed a law to kick Chinese companies off US stock exchanges if they do not fully comply with the country’s auditing rules, giving President Donald Trump one more tool to threaten Beijing with before leaving office, Patricia Zengerle reported for Reuters.
The measure passed the House by unanimous voice vote, after passing the Senate unanimously in May, sending it to Trump, who the White House said is expected to sign it into law. “The Holding Foreign Companies Accountable Act” bars securities of foreign companies from being listed on any U.S. exchange if they have failed to comply with the U.S. Public Accounting Oversight Board’s audits for three years in a row. While iT applies to companies from any country, the legislation’s sponsors intended it to target Chinese companies listed in the US, such as Alibaba, tech firm Pinduoduo Inc. and oil giant PetroChina Co Ltd.
Measures taking a harder line on Chinese business and trade practices generally pass Congress with large margins. Both Democrats and Trump’s fellow Republicans echo the president’s hard line against Beijing, which became fiercer this year as Trump blamed China for the coronavirus ravaging the U.S. Democratic Senator Chris Van Hollen, who co-authored the bill with Republican Senator John Kennedy, said in a statement that American investors “have been cheated out of their money after investing in seemingly-legitimate Chinese companies that are not held to the same standards as other publicly-listed companies.”
The act would also require public companies to disclose whether they are owned or controlled by a foreign government. The American Securities Association praised passage of the bill saying it was necessary to protect Americans from “fraudulent companies controlled by the Chinese Communist Party.”